RETAIL

Retailing is a business activity that involves selling product/services to customers for their non-commercial ,individual or family use. Wholeselling involves selling to individuals and organizations for their business use. MEANING Retail means cutting a piece of or breaking the bulk. It is the 2nd last channel in the distribution channel. It act like an intermediate between the manufacturer and the consumers. It provide 3 Vs to the customers that is VALUE VARIETY VOLUME 4 P of Retailing That enhance the sell of product are Place Possession Passion Pleasure Organized and Unorganized Retailing Organized retailing is based on the principle of unity and unorganized retailing is based on the principle of singularity. Large chains such as WalMart, Big Bazar , etc are some of the example. The unorganized mom and pop retailers and independent retailers continue to fulfil a need. The organized retailing giants are trading organizational expertise for a share of the markets across the world.

KEY FACTORS Change in consumer profile Demographic factor

 Increase in the number of international brands Increasing urbanization TYPES OF RETAILING. FORMATS OF RETAIL MARKET MALLS (60,000 TO 7,00,000 sq feet) These are the largest form of retail formats. They provide an ideal shopping experience by providing a mix of all kinds of products and services, food and entertainment under one roof. Examples are Sahara Mall, Inorbit Mall. Convenience Stores (400-2,000 sq. feet) They are comparatively smaller stores located near residential areas. They are open for an extended period of the day and have a limited variety of stock and convenience products. Prices are slightly higher due to the convenience given to the customers. Specialty Store. Specialty stores offer a wide selection of specially chosen goods pertaining to single product line. These stores provide narrow product line but a wide assortment of choice within this product line. Health & Glow Stores., Departmental Stores It is general merchandise retailers with considerably large retail space with separate section allocated for toiletries, foodstuff body care products & so on. It offers wide variety of products to consumers. Westside, Pantaloons, Shoppers Stop. Department Stores (OVER 30,000 sq feet) Discount Stores: As the name suggest discount stores offers discount on MRP. The purpose of doing so is to obtain profits on large sales volume. For Example: Subiksha. Hypermarkets: It is very large stores having area between 2 lacs-3lacs square feet. For example: Giant Hypermarket SERVICE RETAILING. Combination of goods & services: Video parlor rents video CDs & Sell them as well. Rental goods & services Non-Goods service retailing: Personal services are provided. No physical goods are involved only the time & expertise of the person who is going to provide the service is bought for fee. Stock broker,tutors,personal trainer. Non Store Based Retailing. Direct Selling. Direct Marketing.

 Automated Vending Machine. Direct Selling. It is the process of selling the product directly to the customers by meeting them personally in their homes, offices or other non-store locations. Amway, & Tupperware are well known companies involved in direct selling. Direct Marketing. It is the process of exposing the consumer to the product or service, through mailers, telephone calls, satellite television ,or radio. For example TVC Automatic Vending. It is a type of non-store retailing in which vending machines are used to dispense goods or services to customers without of a sales person. PCO. Anchor Stores/Tenant Any store that serve as the main stores in planned shopping centers because of their strong consumer appeal. Retail. Strategic Decision in Retailing Location Decision Target Market Selection Business Model Positioning in Retail Store Main Activities Involved in Retailing y y y y y y Merchandising Customer service Pricing Store atmospherics Location/distribution Promotion

Selecting a Target Market Retailers analyze demographic, geographic, and psychographic profiles to segment and select potential markets Store Atmospherics & Locations Physical characteristics and amenities that attract customers and satisfy their shopping needs. Location is of paramount importance while planning a retail store. Merchandising Strategy Planograms: Diagrams of how to exhibit selections of merchandise within a store Category management: Retailing strategy which views each product category as an individual profit center, and the retailer manages the performance and growth of the entire category Scrambled Merchandising.

 Scrambled merchandising is a business format decision in which a retailer tries to attract a wide variety of shoppers by offering them a wide range of unrelated merchandise of all kinds. For e.g. a shoe retailer first begins with selling shoes, then sells belts, then handbags and ends up selling t-shirts as well. POP (point of purchase) Point of purchase is the last point in distribution i.e. the point where the consumer is going to buy the product. It can be as broad as a retail store or as specific as the billing counter. When marketers take advantage and place the promotional material in store at the point of purchase, that's called POP material. Huge shopping outlets like Big Bazaar place impulse purchase items like chewing gums, gems, chocolates, mint, mouth fresheners etc. near the billing counter to take advantage of the waiting time. Merchandising It's as simple as taking the product (or merchandise) from a company, and selling it to the customer. Companies take great pains to make sure their products are visible in stores and presented in an appealing fashion. Customer Service Strategy Retailers must decide on the variety of services they make available for shoppers Examples include gift wrapping, bridal registry, return privileges, electronic shopping, and delivery and installation Objectives are to enhance shopper comfort and attract and retain customers Promotional Strategy Retailers use a variety of promotional techniques to establish store images and communicate information about their stores Selling up: retailing selling technique in which salespeople try to persuade customers to buy higher-priced items than originally intended Suggestive selling: involves salespeople attempting to broaden a customers original purchase by adding related items, promotional products, and/or holiday or seasonal merchandise Slotting Allowances Fees paid by manufacturers to secure shelf space from retailers for their product. Factors affecting designing in Retail. 1. Shopper behavior: who comes, how do they move, walk, and bend? 2. Format and type of store: self service, type of merchandise, category planning. 3. Brand image. Atmospherics: look, touch, feel, smell, lights, colors. Material used for fixtures, floorings, their impact on how people walk inside the store. Space for services like rest rooms, cash wraps, staff rooms, warehouse, display area, space between aisles, trolleys, in-store advertising avenues/media, POP display Store Image Consumers perceptions of a store and the shopping experience it provides. Parameters for Measuring Efficiencies in Retail Operation Turnover Margin( Gross) Margin ( Net )

 Fixed assets/Investment/Capital employed No. of employee Sales volume No. of transactions Store space Operating expenses Trends In Retailing In India It is still highly unorganised, but things are changing slowly. 12 lacs retailers in India. Organized retailing is 4%of total retailing. Highest employment provider after agriculture. India has topped AT Kearney's annual Global Retail Development Index (GRDI) for the third consecutive year, maintaining its position as the most attractive market for retail investment. The Indian retail market, which is the fifth largest retail destination globally, according to industry estimates is estimated to grow from US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015. organized retail which presently accounts for 4 per cent of the total market is likely to increase its share to 22 per cent by 2010. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expanding at a rapid pace. Mall space, from a meager one million square feet in 2002, is expected to touch 40 million square feet by end-2007 and an estimated 60 million square feet by end-2008, says Jones Lang LaSalle's third annual Retailer Sentiment Survey-Asia. BENEFITS Higher competition lead to higher quality of products and services. It enhances better life style of its customers. Employment will increase. Technology would be up-graded in terms of logistics, production and distribution channels. It provide variety to its customers. CAREER OPPORTUNITY As retail sector is moving towards modernization and consolidation, generating employment for innumerable people. It is expected to offer 50,000 jobs in the coming FIVE years. Vacancies from the entry level to senior Management level. SKILLS REQUIRED Communication skills, Team spirit, Out standing personality, Dynamic, Right attitude, Inter personal skills, Adaptable